San Francisco-based Twitter reported revenue of $1.2 billion in the second quarter, falling short of average analyst estimates calling for $1.3 billion and slipping 1% from the same period last year.
The company also reported a worse-than-expected loss of $270 million, or 35 cents per share—compared to expectations for a loss of 7 cents per share and a profit of $66 million in the second quarter last year.
In its earnings release, Twitter blamed the disappointing performance on advertising industry headwinds associated with broader economic concerns and uncertainty around Musk’s deal to buy Twitter and take it private.
The firm says it’s not hosting an earnings call, issuing a shareholder letter or sharing financial projections with the deal still in flux.Twitter also disclosed it spent about $33 million related to the acquisition in the second quarter and $19 million on costs associated with layoffs, including some affecting about a third of the firm’s recruiting team.
Twitter stock futures were down 2% to about $38.50 within minutes of the announcement; shares have plunged more than 40% over the past year, while the S&P 500 has fallen about 16%.
Twitter stock has been on a wild ride since Musk acquired a 9% stake in the firm in April, announced a bid to acquire it at a massive premium weeks later and then decided he was “terminating” the deal earlier this month. Shares skyrocketed as much as 60% as the deal gained traction, but soon started collapsing as Musk voiced concerns about fake and spam accounts on the platform. Though Twitter’s board had already approved the takeover, Musk backed out on July 8, pushing shares down nearly 40% from their April highs.
On July 12, Twitter’s board sued Musk for backing out of the deal, asking a Delaware judge to order the billionaire to move forward with the agreement. The trial is being scheduled for October, according to Twitter on Friday. In a note to clients, Wedbush analyst Daniel Ives called Musk’s decision “a disaster scenario for Twitter,” predicting a long legal battle for Twitter to either force the deal through or get Musk to pay a $1 billion termination penalty.
$30 billion. That’s Twitter’s market value on Friday, roughly 22% below Musk’s proposed takeover bid.
Critics by: Shannon Bond
Twitter and Elon Musk are scheduled to face off in a five-day trial in October over the billionaire’s change of heart about buying the social media company for $44 billion. The decision from Chancellor Kathaleen McCormick, the chief judge at Delaware’s Court of Chancery, was a blow to Musk, whose lawyers sought a trial early next year. But with the Twitter deal now in limbo, McCormick agreed to fast-track the trial during a hearing over Zoom on Tuesday.
“The reality is that delay threatens irreparable harm to the sellers and Twitter,” McCormick said in her ruling from the bench. “The longer the delay, the greater the risk.” Earlier this month, the Tesla and SpaceX CEO said he was calling off the deal because of concerns over how many accounts on Twitter are fake or spam. Last week, Twitter sued Musk to force him to go through with the purchase, accusing him of using the issue of automated bot accounts as a pretext to get out of a deal that was no longer good for him financially.
The October trial date is a win for Twitter, which had requested an expedited four-day trial in September. The uncertainty caused by Musk’s threat to pull out of the deal “inflicts harm on Twitter every hour of every day,” Bill Savitt, Twitter’s lead lawyer, said at the hearing. Musk’s lawyers argued they need more time to investigate his concerns over Twitter’s user figures, and that a trial should not take place before February.
Andrew Rossman, Musk’s lawyer, called Twitter’s request for a September trial “completely unjustifiable,” saying it would take months to analyze Twitter’s data and consult experts. He said Twitter had already dragged its feet about sharing information that Musk said he needed to vet the company’s estimates of fake accounts.
“The answers that he got were alarming,” Rossman said. “The runaround that he got from the company was even more alarming.” Savitt accused Musk of trying to “sabotage” the deal and run out the clock past April 2023, when the $13 billion Musk has lined up from banks to fund the deal expires.
“Mr. Musk has made perfectly clear he has no intention of keeping any of his promises,” Savitt said. “Candidly, we suspect that Mr. Musk wants to delay this trial long enough to never really face a reckoning.”Twitter argued Musk’s fixation on bots is a distraction from the question facing the court: whether Musk broke his legal agreement to buy the company.
Twitter has long said that it estimates less than 5% of daily users are not real people. Musk says he believes the true figure is much higher, but has not presented any evidence for his claim that Twitter is misrepresenting the prevalence of fake accounts on the platform.
More Remote Working Apps:
https://quintexcapital.com/?ref=arminham Quintex Capital
https://www.genesis-mining.com/a/2535466 Genesis Mining
https://alpariforex.org/fa/registration/?cpa_partner_id=13687690 Alpari Forex Trading
https://dealcheck.io?fp_ref=armin16 Dealcheck Real Estate Evaluator
https://jvz8.com/c/202927/369164 prime stocks
https://jvz4.com/c/202927/296191 gluten free
https://jvz1.com/c/202927/286851 diet fitness diabetes
https://jvz8.com/c/202927/213027 writing job
https://jvz4.com/c/202927/358049 profile mate
https://jvz8.com/c/202927/376524 super backdrop
https://jvz2.com/c/202927/184902 gaming jobs
https://jvz4.com/c/202927/343405 PR Rage
https://jvz6.com/c/202927/371547 design beast
https://jvz3.com/c/202927/376879 commission smasher
https://jvz2.com/c/202927/376925 MT4Code System
https://jvz6.com/c/202927/375959 viral dash
https://jvz1.com/c/202927/376877 forex expert
https://jvz8.com/c/202927/376381 ada leadz
https://jvz2.com/c/202927/337292 DFY Suite 3.0 Agency+ information
https://jvz8.com/c/202927/291061 VideoRobot Enterprise
https://jvz8.com/c/202927/327447 Klippyo Kreators
https://jvz8.com/c/202927/324615 ChatterPal Commercial
https://jvz8.com/c/202927/299907 WP GDPR Fix Elite Unltd Sites
https://jvz3.com/c/202927/342585 VidSnatcher Commercial
https://jvz3.com/c/202927/320972 Storymate Luxury Edition
https://jvz2.com/c/202927/320466 iTraffic X – Platinum Edition
https://jvz2.com/c/202927/330783 Content Gorilla One-time
https://jvz2.com/c/202927/301402 Push Button Traffic 3.0 – Brand New
https://jvz2.com/c/202927/321987 SociCake Commercial
https://jvz2.com/c/202927/289944 The Internet Marketing
https://jvz2.com/c/202927/297271 Designa Suite License
https://jvz2.com/c/202927/310335 XFUNNELS FE Commercial
https://jvz2.com/c/202927/343635 MediaCloudPro 2.0 – Agency
https://jvz2.com/c/202927/353558 MyTrafficJacker 2.0 Pro+
https://jvz2.com/c/202927/365061 AIWA Commercial
https://jvz2.com/c/202927/357201 Toon Video Maker Premium
https://jvz2.com/c/202927/351754 Steven Alvey’s Signature Series
https://jvz2.com/c/202927/344541 Fade To Black
https://jvz2.com/c/202927/290487 Adsense Machine
https://jvz2.com/c/202927/315596 Diddly Pay’s DLCM DFY Club
https://jvz2.com/c/202927/355249 CourseReel Professional
https://jvz2.com/c/202927/309649 SociJam System
https://jvz2.com/c/202927/263380 360Apps Certification
https://jvz2.com/c/202927/377557 Instant Website Bundle
https://jvz2.com/c/202927/377194 GMB Magic Content
https://jvz2.com/c/202927/376962 PlayerNeos VR
https://jvz8.com/c/202927/381812/ BrandElevate Bundle information
https://jvz4.com/c/202927/381807/ BrandElevate Ultimate
https://jvz2.com/c/202927/381556/ WowBackgraounds Plus
https://jvz4.com/c/202927/381689/ Your3DPal Ultimate
https://jvz2.com/c/202927/380877/ BigAudio Club Fast Pass
https://jvz3.com/c/202927/379998/ Podcast Masterclass
https://jvz3.com/c/202927/366537/ VideoGameSuite Exclusive
https://jvzoo.com/c/202927/381179 YTSuite Advanced
https://jvz1.com/c/202927/381749/ Xinemax 2.0 Commercial
https://jvzoo.com/c/202927/382455 Living An Intentional Life
https://jvzoo.com/c/202927/381812 BrandElevate Bundle
https://jvzoo.com/c/202927/381935 Ezy MultiStores
https://jvz2.com/c/202927/381194/ DFY Suite 4.0 Agency
https://jvz4.com/c/202927/381976/ AppOwls Bundle
https://jvz3.com/c/202927/381615/ WOW Backgrounds 2.0
https://jvz4.com/c/202927/381560 ALL-in-One HD Stock Bundle
https://jvz6.com/c/202927/382326/ Viddeyo Bundle
https://jvz8.com/c/202927/381617/ The Forex Joustar
https://jvz3.com/c/202927/383751/ ADA Web Accessibility Compliance
https://jvz3.com/c/202927/383942/ 10 Bold Actions In Positive Life & Work
https://jvz3.com/c/202927/383706/ Adtivate Agency
https://jvz1.com/c/202927/384099/ My Passive Income Blueprints
https://jvz3.com/c/202927/329145/ Content Tool Kit
https://jvz3.com/c/202927/383940/ QR Verse Bundle
https://jvz4.com/c/202927/379307/ VIADZ Ad Template
https://jvz2.com/c/202927/383051/ EngageYard Ad Creator
https://jvz4.com/c/202927/383751/ Local Leader Bundle
https://jvz8.com/c/202927/383119/ Tonai Voice Content
https://jvz2.com/c/202927/383848/ Vocalic Commercial
https://jvz3.com/c/202927/383483/ Dropshiply Store Creator
https://jvz6.com/c/202927/384025/ Levidio Royal Podcasting
https://jvz6.com/c/202927/383094/ Develop Self Empowerment
https://jvz1.com/c/202927/379223/ Hostley Domain Creator
https://jvz6.com/c/202927/383447/ Mech Forex Robot
https://jvz4.com/c/202927/383177/ Motion Kingdom Studio
https://jvz8.com/c/202927/144577/ Forex Blizz Trading
https://jvz2.com/c/202927/383307/ Animaxime V2
https://jvz8.com/c/202927/375692/ Promovidz Promotion Videos
https://jvz4.com/c/202927/379051/ CanvaKitz Business Templates